Home / Business and Economy / Tamil Nadu Redesigns Global Sports City, Scraps Contract
Tamil Nadu Redesigns Global Sports City, Scraps Contract
27 Aug
Summary
- RPP Infra's ₹205.89 crore contract for Chennai's Global Sports City was terminated.
- The state government decided to redesign the project for larger sporting events.
- RPP Infra is assessing the financial impact of the contract cancellation.
The Tamil Nadu government has canceled a ₹205.89 crore contract awarded to RPP Infra Projects for the development of the Global Sports City in Chennai. This decision stems from the state's plan to restructure and redesign the project to cater to larger future sporting events, including those on the scale of the Asian Games.
The Sports Development Authority of Tamil Nadu (SDAT) communicated the termination to RPP Infra on August 12, following a June 16 meeting. The original contract, awarded on February 18, encompassed the design, engineering, procurement, and construction of the sports city. RPP Infra had commenced work and incurred expenditures before receiving the termination order on July 31.
RPP Infra is currently evaluating the financial consequences of this contract cancellation. The company is examining its rights and available remedies as stipulated within the contract. The precise financial impact and the amount already spent on the project have not yet been quantified. The company acknowledged a delay in its stock exchange disclosure, attributing it to efforts to continue the project.
SDAT's termination order specified that the cancellation was enacted under provisions related to contract cancellation, reduction of works, termination, and force majeure. The termination took immediate effect upon receipt by RPP Infra.
